CBN retains MPR at 14%, CRR 22%
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) kept its benchmark interest rate, Monetary Policy Rate (MPR) at 14 per cent and also maintained existing Cash Reserve Ratios (CRR) for commercial banks at 22.5 per cent.
The CBN Governor, Godwin Emefiele told reporters on Tuesday in Abuja the outcome of the two-day meeting, sayig: “While challenges in the economy remain, monetary policy alone can’t boost growth. Cutting interest rates is not advisable and the current stance will help to limit inflation.
Before the announcement of the outcome of the MPC meeting, analysts at FSDH Merchant Bank Limited said in an e-mailed note to clients, “Given the stagflation the country faces at the moment, maintaining rates at the current level may be the best option”.
The Monetary Policy Rate (MPR) was increased by 200 basis points to 14 per cent in July to attract foreign capital and help prop up the naira. The currency is about 30 percent more expensive on the black market than the official exchange rate.
The International Monetary Fund forecast the economy will shrink by 1.8 percent this year, the first full-year contraction since 1991. Power shortages, a decline in oil prices and output and the delayed passage of a 6.1 trillion-naira ($19.3 billion) budget planned to stimulate economic activity have weighed on output.
According to National Bureau of Statistics (NBS), the country inflation accelerated to 17.6 percent in August, the highest rate since October 2005, as the naira’s almost 40 percent drop against the dollar since the removal of a currency peg on June 20 made imports from food to industrial inputs more expensive.
The peg caused foreign-currency shortages which contributed to the country’s economy contracting by 2.1 percent in the second quarter from a year earlier after shrinking 0.4 percent in the three months through March. The country is still not free from the effect of the peg, three months after its removal.
9/22/2016 at 18:52:59 Greetings from danglekatangul
9/24/2016 business247ng.com does it yet again! Very perceptive site and a well-written post. Thanks!
LIke your site. Do you want to trade links.
I’m pleased with the way that business247ng.com deals with this sort of subject! Generally on point, often polemic, consistently well-researched and stimulating.
I cling on to listening to the newscast talk about receiving boundless online grant applications so I have been looking around for the best site to get one. Could you advise me please, where could i find some?
9/28/2016 Appreciate business247ng.com– very informative and much to consider!
Excellent read. I just sent this on 9/29/2016 to a colleague who’s been doing some work of his own on this topic. To say thanks, they just bought me dinner! So, I should probably say: Thank you for the drink!
9/30/2016 I’m gratified with the way that business247ng.com covers this kind of issue. Generally to the point, sometimes controversial, without fail thoughtful and also stimulating.
Thanks for the great site you’ve created at business247ng.com. Your enthusiastic take on the subject is certainly inspiring. Thanks again!
Appreciate business247ng.com– very easy to navigate and lots to consider!
business247ng.com does it again! Quite a informative site and a well-written post. Nice work!
10/9/2016 business247ng.com does it again! Very interesting site and a well-written post. Nice work!
business247ng.com does it again! Quite a interesting site and a good article. Nice work!
Definitely, what a fantastic website and illuminating posts, I definitely will bookmark your site.Best Regards!
You can definitely see your skills in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart.
2. Hope to see more of your work soon.
10/25/2016 business247ng.com does it again! Quite a interesting site and a good post. Nice work!